When Jack Hu of Phoenix Growth Fund acquired a parcel of Firmus Technologies shares in June, a rapid sale just a month later for a near 60 per cent return highlighted the intense activity surrounding the artificial intelligence darling. The transaction, where shares were bought at $145 and sold at $230 each, underscored a broader flurry of trading as early investors navigate significant gains ahead of Firmus’s highly anticipated ASX listing.
This divestment by Phoenix coincided with a substantial $300 million trade where Wes Maas’ construction company acquired a portion of Firmus shares at $230 apiece from early backers including Geoff Wilson’s Wilson Asset Management (WAM) and Phil King’s Regal Partners. Firmus Technologies, a data centre developer that began as a bitcoin miner, now stands as a prominent player in the artificial intelligence space. While some funds like Regal, after a circa 30-times return, and WAM, with a fivefold return, cited portfolio concentration risk for selling parts of their stakes, others are holding firm.
Tectonic Investment Management, for instance, has not sold any of its significant Firmus stake, which it first acquired in 2021 at an average entry price of $5, now valuing its position up 45 times. The divergence in investor sentiment, with “true believers” like Blackstone and large offshore funds accumulating, while others take profits or manage risk, is drawing comparisons to the lead-up to Elon Musk’s SpaceX float. Hu noted the “divisive” views echoing SpaceX’s post-IPO volatility, where despite initial surges, the stock later plunged due to higher-than-expected AI business spending. This dynamic highlights the challenge in traditional valuation for companies heavily investing in capital expenditure while building monopoly positions in emerging sectors.
